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Abiomed (ABMD) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
Crown Castle (CCI) delivered FFO and revenue surprises of 3.50% and 3.58%, respectively, for the quarter ended June 2019. Do the numbers hold clues to what lies ahead for the stock?

In the latest trading session, Abiomed (ABMD) closed at $268.14, marking a -1% move from the previous day. This change lagged the S&P 500's daily loss of 0.04%. At the same time, the Dow lost 0.51%, and the tech-heavy Nasdaq gained 0.21%.

Heading into today, shares of the maker of heart devices had lost 2.01% over the past month, outpacing the Medical sector's loss of 5.37% and lagging the S&P 500's gain of 4.65% in that time.

Wall Street will be looking for positivity from ABMD as it approaches its next earnings report date. This is expected to be May 2, 2019. On that day, ABMD is projected to report earnings of $1.07 per share, which would represent year-over-year growth of 33.75%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $216.43 million, up 24.07% from the year-ago period.

Investors might also notice recent changes to analyst estimates for ABMD. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.2% lower. ABMD is currently a Zacks Rank #4 (Sell).

Investors should also note ABMD's current valuation metrics, including its Forward P/E ratio of 54.97. This valuation marks a premium compared to its industry's average Forward P/E of 31.54.

Also, we should mention that ABMD has a PEG ratio of 1.98. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Medical - Instruments stocks are, on average, holding a PEG ratio of 2.63 based on yesterday's closing prices.

The Medical - Instruments industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 88, which puts it in the top 35% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow ABMD in the coming trading sessions, be sure to utilize Zacks.com.

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